The Combat Poverty Agency has proposed a new savings scheme aimed specifically at low income households, which would complement the Government's existing special savings scheme.
The CPA wants the new scheme to be introduced in December's Budget. Its director Helen Johnston said a higher top-up was needed to encourage low income households to save.
The CPA proposal would require savings of between £1 and £2.50 a week over a 26-week period, with the Government adding an additional £1 for every £1 saved, up to a maximum of £240 after three years.
The agency says such a scheme would cost around £60m over three years, compared with the £1,000m estimated cost of the current scheme.
Ms Johnston said the £10 minimum amount required for the SSIA scheme was too high for poorer households, while the five-year savings period was too long.
